(Srilankamirror) – The one best performed stock exchange – the Colombo stock exchange has been dealt with a huge blow with an introduction of market unfriendly rules. These rules will further dampen and rifle growth of the Colombo stock exchange. It would be like chopping off your hand to cure a wound in your finger.
Prohibition of trading to market intermediaries
The new SEC rules prohibit stock brokers and directors from trading to dredge securities for a period of six months. This is detrimental and affects fundaments rights of the citizens. This will prevent a very inform set of investors from trading in the market and will result in the reduction of the number of active traders in the Colombo market. This rule will no doubt encourage stock brokers to trade on nominal grounds to circumvent from the roof, propositions and procedures in a better cure than a hard rule – the market.
Upper limit on crossing rules
Introduction of a 20 pc on Upper limit crossing rules is certainly not going to do justice to the efficient and effective functioning of a capital market, the determination of a large castle and the prerogative of the buyer and the seller. It is difficult to understand how the SEC arrived at 20% and whether it is their mandate to fix prices on crossing. This rule will certainly trifle the growth of the market and raise issues among prospective companies that are to be listed on the Colombo market.
In a democratic country, consultation of stakeholders before taking arbitrary decisions would help the participation at effective decision making process.